{"id":61062,"date":"2025-04-22T09:44:16","date_gmt":"2025-04-22T09:44:16","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=61062"},"modified":"2025-04-22T09:44:16","modified_gmt":"2025-04-22T09:44:16","slug":"wazirx-eyes-comeback-as-court-ruling-on-restructuring-and-compensation-nears","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=61062","title":{"rendered":"WazirX Eyes Comeback as Court Ruling on Restructuring and Compensation Nears"},"content":{"rendered":"

Indian crypto exchange WazirX is preparing for a potential relaunch, pending a key decision from Singapore\u2019s High Court on May 13 regarding its restructuring and user compensation plan. <\/span><\/p>\n

The exchange, which suffered a $234 million hack in July 2024, says it could resume operations and <\/span>begin compensating<\/span> affected users within 10 business days if the court approves its proposal.<\/span><\/p>\n

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WazirX Parent Zettai Completes Steps Ahead of Court Sanction Hearing<\/span><\/h2>\n

In an <\/span>update posted on April 21<\/span><\/a>, WazirX\u2019s parent company, Zettai PTE Ltd, confirmed it had completed all necessary steps leading up to the court\u2019s sanction hearing. <\/span><\/p>\n

\u201cThis hearing is essential for the Scheme to become legally effective,\u201d the company stated, emphasizing its commitment to following legal procedures despite delays inherent in court processes.<\/span><\/p>\n

The massive hack, attributed to North Korean cybercriminals, targeted WazirX\u2019s Safe Multisig wallet, forcing the exchange to suspend <\/span>both<\/span> crypto and fiat withdrawals. <\/span><\/p>\n

In response, Zettai crafted a restructuring plan centered around issuing recovery tokens, which will be gradually repurchased using the exchange\u2019s future profits. The plan is designed to return 75% to 80% of users\u2019 lost balances.<\/span><\/p>\n

Earlier this month, over 90% of voting creditors approved the proposal, avoiding a scenario where repayments could have been delayed until 2030. The plan now awaits final court approval before implementation.<\/span><\/p>\n

\u201cWe understand the eagerness around the platform restart and truly appreciate your continued patience,\u201d WazirX said. The platform reaffirmed its goal to resume services within the April-May 2025 timeframe.<\/span><\/p>\n

FAQ: What\u2019s the current update on the restart of WazirX operations?<\/p>\n

A: We understand the eagerness around the platform restart and truly appreciate your continued patience. Since the beginning, we have communicated that the First Distribution and restart would occur within the\u2026 pic.twitter.com\/VJtfX4EBLh<\/a><\/p>\n

\u2014 WazirX: India Ka Bitcoin Exchange (@WazirXIndia) April 21, 2025<\/a><\/p>\n\n

Meanwhile, legal challenges continue. On 16 April 2025, India\u2019s Supreme Court dismissed a petition filed by 54 victims of the hack. The victims were seeking legal action against WazirX, its co-founder Nischal Shetty, Binance, and custody provider Liminal. <\/span><\/p>\n

The justices ruled that the matter fell outside the court\u2019s jurisdiction. The court advised petitioners to approach a regulatory authority instead.<\/span><\/p>\n

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Indian Supreme Court Dismisses WazirX Hack Petition <\/span><\/h2>\n

As reported, the Indian Supreme Court has <\/span>dismissed a petition<\/span><\/a> filed by 54 victims of the 2024 WazirX hack. The heist involved \u20b92,000 crore ($234 million) being stolen by North Korea\u2019s Lazarus Group.<\/span><\/p>\n

The court cited the lack of a clear regulatory framework for cryptocurrencies <\/span>as the reason<\/span> for rejecting claims against WazirX\u2019s management, Binance, and Liminal Custody.<\/span><\/p>\n

Victims accused the exchange of negligence and poor security practices. However, they <\/span>were told by the court that the issue falls under policy-making, not judicial intervention.<\/span><\/p>\n

The petition had requested a Special Investigation Team and a forensic audit. But the court advised them to seek resolution through regulatory bodies like the RBI, SEBI, and CBI.<\/span><\/p>\n

The decision has reignited criticism of India\u2019s crypto stance. It highlights the contradiction between taxing crypto profits at 30% while offering little legal protection to investors. <\/span><\/p>\n

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\n

Key Takeaways<\/h3>\n

WazirX is set to relaunch pending Singapore\u2019s High Court approval of its restructuring and compensation plan.<\/span> <\/p>\n

Over 90% of creditors backed WazirX\u2019s recovery token plan, aiming to return up to 80% of user funds if the court gives the green light.<\/span> <\/p>\n

India\u2019s Supreme Court dismissed victims\u2019 legal action due to regulatory gaps, sparking criticism over the country\u2019s lack of crypto investor protection.<\/span> <\/p><\/div>\n

The post WazirX Eyes Comeback as Court Ruling on Restructuring and Compensation Nears<\/a> appeared first on 99Bitcoins<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Indian crypto exchange WazirX is preparing for a potential relaunch, pending a key decision from Singapore\u2019s High Court on May 13 regarding its restructuring and user compensation plan. The exchange, which suffered a $234 million hack in July 2024, says it could resume operations and begin compensating affected users within 10 business days if the […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-61062","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/61062"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=61062"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/61062\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=61062"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=61062"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=61062"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}